[Federal Register Volume 60, Number 188 (Thursday, September 28, 1995)]
[Rules and Regulations]
[Pages 50077-50078]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24122]



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 Rules and Regulations
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  Federal Register / Vol. 60, No. 188 / Thursday, September 28, 1995 / 
Rules and Regulations  

[[Page 50077]]


DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 58

[DA-95-17]
RIN 0581-AB40


Grading and Inspection, General Specifications for Approved 
Plants and Standards for Grades of Dairy Products: Revision of User 
Fees

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Agricultural Marketing Service is increasing the fees 
charged for services provided under the dairy grading program. This 
rule will yield an estimated $87,000 of additional user fee revenue in 
FY 1996. The program is a voluntary, user-fee funded program conducted 
under the authority of the Agricultural Marketing Act of 1946, as 
amended. This action increases the hourly rate to $43.00 per hour for 
continuous resident services and $48.00 per hour for nonresident 
services between the hours of 6 a.m. and 6 p.m. These fees represent a 
$0.80 per hour increase for both resident and nonresident services. The 
fee for nonresident services between the hours of 6 p.m. and 6 a.m. is 
$52.80 per hour, which represents an increase of $0.80 per hour.
    The fees need to be increased to cover the costs of recent salary 
increases and locality adjustments, the full funding of standardization 
activities, and normal inflationary pressures.

EFFECTIVE DATE: October 1, 1995.

FOR FURTHER INFORMATION CONTACT: Lynn G. Boerger, USDA/AMS/Dairy 
Division, Dairy Grading Branch, Room 2750-South Building, P.O. Box 
96456, Washington, D.C. 20090-6456, (202) 720-9381.

SUPPLEMENTARY INFORMATION: This rule has been determined not 
significant for the purposes of Executive Order 12866 and has been 
reviewed by the Office of Management and Budget.
    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule is not intended to have preemptive 
effect with respect to any State or local laws, regulations or 
policies. This rule is not intended to have retroactive effect. There 
are no administrative procedures which must be exhausted prior to any 
judicial challenge to this rule or the application of its provisions.
    This final rule has been reviewed in accordance with the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq., and the Administrator, 
Agricultural Marketing Service, has determined that the rule will not 
have a significant economic impact on a substantial number of small 
entities. The changes will not significantly affect the cost per unit 
for grading and inspection services. The Agricultural Marketing Service 
estimates that this rule will yield an additional $87,000 in user fee 
revenue during FY 1996. The Agency does not believe the increases will 
affect competition. Furthermore, the dairy grading program is a 
voluntary program.
    The Agricultural Marketing Act of 1946, as amended, authorizes the 
Secretary of Agriculture to provide Federal dairy grading and 
inspection services that facilitate marketing and help consumers obtain 
the quality of dairy products they desire. The Act provides that 
reasonable fees be collected from the users of the services to cover 
the cost of maintaining the program.
    Since the costs of the grading program are covered by user fees, it 
is essential that fees be increased to cover the cost of maintaining a 
financially self-supporting program. The last fee increase under this 
program became effective on February 9, 1994. Since that time, the 
salaries of Federal employees increased by 2.6 percent as of January 8, 
1995. Also, there have been normal increases in other operating costs. 
In addition, recent congressional action may result in additional 
salary increases of varying amounts in 1996. Although the program's 
operating reserves were adequate to cover the January 8, 1995, salary 
increase, this will not be the case for 1996 salary increases, and a 
fee increase is needed.
    The grading program fees also need to be increased to cover the 
remaining costs related to the development of dairy product standards 
and other activities now performed by the Dairy Division's 
Standardization Branch. In FY 1994, Congress appropriated money for the 
development of standards by the Agricultural Marketing Service but at 
the same time stipulated that the program costs be recovered through 
user fees, with the fees being turned over to the U.S. Treasury. The 
fee increase which took effect on February 9, 1994, provided for \2/3\ 
of the cost of the program. Since the dairy standardization program is 
an essential part of the dairy grading program, it is appropriate that 
the standardization program costs be recovered through the fees charged 
the users of the grading program. The projected cost of the dairy 
standardization program for FY 1996 is $440,000.
    On August 7, 1995, the Agricultural Marketing Service published in 
the Federal Register (60 FR 40115) for public comment a document 
proposing an $0.80 increase in the hourly fees for both the resident 
and nonresident programs. No comments were received.
    Pursuant to 5 U.S.C. 553, it is hereby found that good cause exists 
for not delaying the effective date of this action until 30 days after 
publication of this final rule in the Federal Register. A revenue 
shortfall warrants putting the higher rates into effect as quickly as 
possible. The increase in fees is essential for effective management 
and operation of the program and to satisfy the intent of the 
Agricultural Marketing Act of 1946. A proposed rule setting forth 
proposed fee increases was published in the Federal Register on August 
7, 1995 (60 FR 40115). Therefore, the provisions of this final rule are 
known to interested parties.
    The supplemental information section of the proposed rule 
inadvertantly misstated, by one year, the approximate effective date of 
the fee increase. The approximate date read October 1, 1996, instead of 
October 1, 1995. We believe the effective date was understood by 
readers to be October 1, 1995 because the supplemental information 
referred to the implementation of the fee increase to be on an 
expedited basis, 

[[Page 50078]]
and, in addition, the proposed rule allowed only a 30-day comment 
period.
    Accordingly, the program fees are being increased as set forth 
below.

Program Changes Adopted in the Final Rule

    This document makes the following changes in the regulations 
implementing the dairy inspection and grading program:
    1. Increases the hourly fee for nonresident services from $47.20 to 
$48.00 for services performed between 6 a.m. and 6 p.m. and from $52.00 
to $52.80 for services performed between 6 p.m. and 6 a.m.
    The nonresident hourly rate is charged to users who request an 
inspector or grader for particular dates and amounts of time to perform 
specific grading and inspection activities. These users of nonresident 
services are charged for the amount of time required to perform the 
task and undertake related travel, plus travel costs.
    2. Increases the hourly fee for continuous resident services from 
$42.20 to $43.00.
    The resident hourly rate is charged to those who are using grading 
and inspection services performed by an inspector or grader assigned to 
a plant on a continuous, year-round, resident basis.

List of Subjects in 7 CFR Part 58

    Food grades and standards, Dairy products, Food labeling, Reporting 
and recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR Part 58 is amended 
as follows:

PART 58-GRADING AND INSPECTION, GENERAL SPECIFICATIONS FOR APPROVED 
PLANTS AND STANDARDS FOR GRADES OF DAIRY PRODUCTS

    1. The authority citation for Part 58 continues to read as follows:

    Authority: 7 U.S.C. 1621-1627.

    2. In Part 58, subpart A, Sec. 58.43 is revised to read as follows:


Sec. 58.43  Fees for inspection, grading, and sampling.

    Except as otherwise provided in sections 58.38 through 58.46, 
charges shall be made for inspection, grading, and sampling service at 
the hourly rate of $48.00 for service performed between 6 a.m. and 6 
p.m., and $52.80 for service performed between 6 p.m. and 6 a.m., for 
the time required to perform the service calculated to the nearest 15-
minute period, including the time required for preparation of 
certificates and reports and the travel time of the inspector and 
grader in connection with the performance of the service. A minimum 
charge of one-half hour shall be made for service pursuant to each 
request or certificate issued.
    3. Section 58.45 is revised to read as follows:


Sec. 58.45  Fees for continuous resident service.

    Irrespective of the fees and charges provided in sections 58.39 and 
58.43, charges for the inspector(s) and grader(s) assigned to a 
continuous resident program shall be made at the rate of $43.00 per 
hour for services performed during the assigned tour of duty. Charges 
for service performed in excess of the assigned tour of duty shall be 
made at a rate of 1\1/2\ times the rate stated in this section.

    Dated: September 25, 1995.
M. Michael Holbrook,
Acting Administrator.
[FR Doc. 95-24122 Filed 9-27-95; 8:45 am]
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